Hexaware Q1FY27 Results: Profit Slips 6% Even As Revenue Climbs, Margin Improves

Hexaware Technologies posted a mixed June quarter, with revenue and operating profit both improving sequentially while net profit dipped, as factors below the operating line weighed on the bottom line.

Hexaware Technologies shares were under pressure in early trade on Thursday. At 11:53 AM, the stock was down 7.73% at ₹570.50.

Key Financial Highlights Of Hexaware Q1FY27

• Net profit: ₹330 crore, down 6.1% quarter-on-quarter (QoQ) from ₹352 crore.

• Revenue: ₹3,845 crore, up 5.7% QoQ from ₹3,639 crore.

• Earnings before interest and tax (EBIT): ₹524 crore, up 9% QoQ from ₹480 crore.

• EBIT margin: 13.6%, up from 13.3% in the March quarter.

• Headcount: 34,506, adding 708 employees sequentially, including 179 net IT additions

• Information Technology (IT) voluntary attrition: 11.2%

• IT utilisation: 84.8%

Vertical And Geography Performance

Three business verticals ended the quarter with year-on-year growth: Healthcare and Insurance, Manufacturing and Consumer, and Banking and Financial Services. Professional Services and Travel and Transportation moved in the opposite direction, posting a decline.

Geographically, Asia Pacific recorded the strongest year-on-year growth at 24.8%, with Healthcare and Insurance leading among industry verticals at 18.9%.

What Management Said

Chief Executive R Srikrishna said the company delivered strong growth in a challenging quarter for the industry and noted that Hexaware's AI Labs continued launching one new offering every month to support long-term growth.

Chief Financial Officer Vikash Jain described the quarter as the company's first with its enterprise resource planning system go-live, calling it a major milestone in its transformation journey. He said the quarter delivered industry-leading revenue growth, margin expansion and solid cash conversion, reflecting disciplined execution.

Broader Context

The margin expansion to 13.6% despite a bottom-line decline points to pressure from below the operating line rather than from the core business.

The IT services sector broadly continues to navigate cautious client spending and macroeconomic uncertainty, and Hexaware's ability to grow revenue 5.7% sequentially in that environment is the headline the market will focus on.

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